Correlation Between Bajaj Healthcare and Silver Touch
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By analyzing existing cross correlation between Bajaj Healthcare Limited and Silver Touch Technologies, you can compare the effects of market volatilities on Bajaj Healthcare and Silver Touch and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bajaj Healthcare with a short position of Silver Touch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Healthcare and Silver Touch.
Diversification Opportunities for Bajaj Healthcare and Silver Touch
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bajaj and Silver is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Healthcare Limited and Silver Touch Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Touch Technologies and Bajaj Healthcare is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bajaj Healthcare Limited are associated (or correlated) with Silver Touch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Touch Technologies has no effect on the direction of Bajaj Healthcare i.e., Bajaj Healthcare and Silver Touch go up and down completely randomly.
Pair Corralation between Bajaj Healthcare and Silver Touch
Assuming the 90 days trading horizon Bajaj Healthcare Limited is expected to generate 3.27 times more return on investment than Silver Touch. However, Bajaj Healthcare is 3.27 times more volatile than Silver Touch Technologies. It trades about 0.03 of its potential returns per unit of risk. Silver Touch Technologies is currently generating about -0.06 per unit of risk. If you would invest 55,355 in Bajaj Healthcare Limited on October 28, 2024 and sell it today you would earn a total of 510.00 from holding Bajaj Healthcare Limited or generate 0.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bajaj Healthcare Limited vs. Silver Touch Technologies
Performance |
Timeline |
Bajaj Healthcare |
Silver Touch Technologies |
Bajaj Healthcare and Silver Touch Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bajaj Healthcare and Silver Touch
The main advantage of trading using opposite Bajaj Healthcare and Silver Touch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Healthcare position performs unexpectedly, Silver Touch can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Silver Touch will offset losses from the drop in Silver Touch's long position.Bajaj Healthcare vs. Fineotex Chemical Limited | Bajaj Healthcare vs. TECIL Chemicals and | Bajaj Healthcare vs. Sukhjit Starch Chemicals | Bajaj Healthcare vs. JB Chemicals Pharmaceuticals |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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